[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2489 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2489

 To amend the Internal Revenue Code of 1986 to ensure that sufficient 
  funding is made available for the Highway Trust Fund, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 18, 2014

   Mr. Walsh introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to ensure that sufficient 
  funding is made available for the Highway Trust Fund, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Jobs for 
American Infrastructure Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--HIGHWAY TRUST FUND

Sec. 101. Ensuring sufficient funding for the Highway Trust Fund.
Sec. 102. Sense of Congress regarding the Surface Transportation 
                            reauthorization.
                     TITLE II--WATER INFRASTRUCTURE

Sec. 201. Reclamation Water Infrastructure Fund.
Sec. 202. Sense of Congress regarding direction of Secretary of the 
                            Interior.
                    TITLE III--ENERGY INFRASTRUCTURE

Sec. 301. Energy Upgrade and Retrofit Infrastructure Fund.
Sec. 302. Sense of Congress regarding direction of Secretary of Energy.
                  TITLE IV--TAXATION OF FOREIGN INCOME

Sec. 401. Allocation of expenses and taxes on basis of repatriation of 
                            foreign income.
Sec. 402. Modifications to rules relating to inverted corporations.
                       TITLE V--DEFICIT REDUCTION

Sec. 501. Deficit reduction.

                      TITLE I--HIGHWAY TRUST FUND

SEC. 101. ENSURING SUFFICIENT FUNDING FOR THE HIGHWAY TRUST FUND.

    (a) In General.--Section 9503(f) of the Internal Revenue Code of 
1986 is amended by redesignating paragraph (5) as paragraph (6) and by 
inserting after paragraph (4) the following new paragraph:
            ``(5) Ensuring adequate balances in highway account and 
        mass transit account.--For the period of fiscal years 2014 
        through 2018, out of money in the Treasury not otherwise 
        appropriated, there are hereby appropriated--
                    ``(A) in the case of the Highway Account (as 
                defined in subsection (e)(5)(B)) in the Highway Trust 
                Fund, such amounts as are determined by the Secretary 
                to be necessary to ensure that the balance of such 
                account is not less than $4,000,000,000 for any quarter 
                during such period, and
                    ``(B) in the case of the Mass Transit Account in 
                the Highway Trust Fund, such amounts as are determined 
                by the Secretary to be necessary to ensure that the 
                balance of such account is not less than $1,000,000,000 
                for any quarter during such period.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 102. SENSE OF CONGRESS REGARDING THE SURFACE TRANSPORTATION 
              REAUTHORIZATION.

    It is the sense of Congress that Congress should provide annual 
inflation increases for the Federal Lands Access Program, the Federal 
Lands Transportation Program, and the Tribal Transportation Program in 
the next Surface Transportation reauthorization.

                     TITLE II--WATER INFRASTRUCTURE

SEC. 201. RECLAMATION WATER INFRASTRUCTURE FUND.

    (a) Establishment of Fund.--There is established in the Treasury a 
fund to be known as the ``Reclamation Water Infrastructure Fund'' 
(referred to in this section as the ``Fund''), to be administered by 
the Secretary of the Interior, to be available without fiscal year 
limitation and not subject to appropriation, for use in accordance with 
subsection (e).
    (b) Deposits.--For the period of fiscal years 2015 through 2036, 
the Secretary of the Treasury shall deposit in the Fund--
            (1) of the revenues that would otherwise be deposited for 
        each fiscal year in the reclamation fund established by the 
        first section of the Act of June 17, 1902 (32 Stat. 388, 
        chapter 1093), $150,000,000; and
            (2) out of amounts in the Treasury not otherwise obligated, 
        $6,500,000,000.
    (c) Investment.--
            (1) In general.--The Secretary of the Treasury shall invest 
        such portion of the Fund as is not, in the judgment of the 
        Secretary, required to meet current withdrawals.
            (2) Credits to fund.--The interest on, and the proceeds 
        from the sale or redemption of, any obligations held in the 
        Fund shall be credited to, and form a part of, the Fund.
    (d) Prohibition.--Amounts in the Fund may not be made available for 
any purpose other than a purpose described in subsection (e).
    (e) Use of Funds.--The Secretary of the Interior may use amounts in 
the Fund for the following purposes:
            (1) Rural water projects.--To complete construction (but 
        not including operation or maintenance) of rural water 
        projects--
                    (A) that were authorized to be carried out by the 
                Secretary on or before the date of enactment of this 
                Act; or
                    (B) for which--
                            (i) pursuant to section 106(e) of the Rural 
                        Water Supply Act of 2006 (43 U.S.C. 2405(e)), a 
                        feasibility study has been submitted to the 
                        Secretary by not later than December 31, 2015; 
                        and
                            (ii) an Act enacted after the date of 
                        enactment of this Act authorizes construction.
            (2) Deferred maintenance of indian irrigation projects.--To 
        address deferred maintenance needs of Indian irrigation 
        projects (including maintenance, repair, and replacement 
        activities for any structures, facilities, equipment, or 
        vehicles used in connection with the operation of those 
        projects) that, on the date of enactment of this Act--
                    (A) are owned by the Federal Government, as listed 
                in the Federal inventory required by Executive Order 
                13327 (40 U.S.C. 121 note; relating to Federal real 
                property asset management);
                    (B) are managed by the Bureau of Indian Affairs 
                (including projects managed under contracts or compacts 
                pursuant to the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450 et seq.)); and
                    (C) have deferred maintenance documented by the 
                Bureau of Indian Affairs.
            (3) Indian reserved water rights settlements.--To provide 
        amounts to complete construction, planning, and design of any 
        project, or to implement any provision of Federal law, that--
                    (A) settles or otherwise resolves, in whole or in 
                part, litigation involving the United States and the 
                rights of one or more federally recognized Indian 
                tribes to access, use, or manage water resources; or
                    (B) implements an agreement approved by Congress 
                pursuant to which one or more federally recognized 
                Indian tribes agree to some limitation on the exercise 
                of rights or claims to access, use, or manage water 
                resources.
    (f) Annual Reports.--
            (1) In general.--Not later than 60 days after the end of 
        each fiscal year beginning with fiscal year 2015, the Secretary 
        of the Interior shall submit to the Committee on Appropriations 
        of the House of Representatives, the Committee on 
        Appropriations of the Senate, and authorizing committees a 
        report on the operation of the Fund during the fiscal year.
            (2) Contents.--Each report shall include, for the fiscal 
        year covered by the report, the following:
                    (A) A statement of the amounts deposited into the 
                Fund.
                    (B) A description of the expenditures made from the 
                Fund for the fiscal year, including the purpose of the 
                expenditures.
                    (C) Recommendations for additional authorities to 
                fulfill the purpose of the Fund.
                    (D) A statement of the balance remaining in the 
                Fund at the end of the fiscal year.

SEC. 202. SENSE OF CONGRESS REGARDING DIRECTION OF SECRETARY OF THE 
              INTERIOR.

    It is the sense of Congress that Congress should provide direction 
to the Secretary of the Interior with respect to expenditures under 
this title, including--
            (1) requirements under the annual budget submission of the 
        President;
            (2) annual reporting requirements describing final 
        allocations;
            (3) programmatic goals to carry out this title; and
            (4) funding prioritization criteria to serve as a 
        methodology for distributing funds.

                    TITLE III--ENERGY INFRASTRUCTURE

SEC. 301. ENERGY UPGRADE AND RETROFIT INFRASTRUCTURE FUND.

    (a) Establishment of Fund.--There is established in the Treasury a 
fund to be known as the ``Energy Upgrade and Retrofit Infrastructure 
Fund'' (referred to in this section as the ``Fund''), to be 
administered by the Secretary of Energy, to be available without fiscal 
year limitation and not subject to appropriation, for use in accordance 
with subsection (e).
    (b) Deposits.--For the period of fiscal years 2015 through 2034, 
the Secretary of the Treasury shall deposit in the Fund, out of amounts 
in the Treasury not otherwise obligated, $8,000,000,000.
    (c) Investment.--
            (1) In general.--The Secretary of the Treasury shall invest 
        such portion of the Fund as is not, in the judgment of the 
        Secretary, required to meet current withdrawals.
            (2) Credits to fund.--The interest on, and the proceeds 
        from the sale or redemption of, any obligations held in the 
        Fund shall be credited to, and form a part of, the Fund.
    (d) Prohibition.--Amounts in the Fund may not be made available for 
any purpose other than a purpose described in subsection (e).
    (e) Use of Funds.--
            (1) In general.--Of amounts in the Fund, the Secretary of 
        Energy may use, in accordance with this title, such sums as are 
        necessary to provide grants, loans, loan guarantees, or other 
        credit financing instruments, including any such instruments 
        under the Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.), 
        to support novel and innovative technologies that--
                    (A) capture or prevent carbon dioxide emissions 
                from carbon-based fuels;
                    (B) enable the beneficial use of carbon dioxide and 
                other greenhouse gases;
                    (C) enable the long-term storage of carbon dioxide;
                    (D) reduce net carbon emissions from the fleet of 
                electric generation units in a State or region of the 
                bulk electric system; or
                    (E) construct, upgrade, or retrofit electric 
                transmission property that serves the public interest 
                by facilitating the deployment of low-carbon energy 
                sources while ensuring reliability and reducing 
                congestion.
            (2) Prioritization.--In carrying out paragraph (1), the 
        Secretary of Energy shall give priority to projects that 
        upgrade or retrofit existing infrastructure for the generation 
        and transmission of electric power.
            (3) Commercial-scale coal technology.--
                    (A) Expenditure.--Not less than 60 percent of 
                amounts expended under this subsection shall be for 
                commercial-scale, coal-fired electric generation 
                units--
                            (i) designed to generate and sell electric 
                        power directly to consumers or for resale; and
                            (ii) with a carbon dioxide capture and 
                        storage system having a useful life of not 
                        fewer than 15 years.
                    (B) Eligible projects.--Eligible projects under 
                this paragraph include projects for--
                            (i) the construction of new coal-fired 
                        electric generation units;
                            (ii) the retrofitting of existing coal-
                        fired electric generation units; or
                            (iii) the construction of carbon dioxide 
                        transmission pipelines to transport carbon 
                        dioxide from carbon capture and sequestration 
                        facilities to--
                                    (I) sequestration sites; or
                                    (II) sites at which the carbon 
                                dioxide will be used for hydrocarbon 
                                recovery.
    (f) Annual Reports.--
            (1) In general.--Not later than 60 days after the end of 
        each fiscal year beginning with fiscal year 2015, the Secretary 
        of Energy shall submit to the Committee on Appropriations of 
        the House of Representatives, the Committee on Appropriations 
        of the Senate, and authorizing committees a report on the 
        operation of the Fund during the fiscal year.
            (2) Contents.--Each report shall include, for the fiscal 
        year covered by the report, the following:
                    (A) A statement of the amounts deposited into the 
                Fund.
                    (B) A description of the expenditures made from the 
                Fund for the fiscal year, including the purpose of the 
                expenditures.
                    (C) Recommendations for additional authorities to 
                fulfill the purpose of the Fund.
                    (D) A statement of the balance remaining in the 
                Fund at the end of the fiscal year.

SEC. 302. SENSE OF CONGRESS REGARDING DIRECTION OF SECRETARY OF ENERGY.

    It is the sense of Congress that Congress should provide direction 
to the Secretary of Energy with respect to effects of expenditures 
under this title on other applicable Federal programs and laws, 
including--
            (1) provisions of the Internal Revenue Code of 1986 that 
        affect electric power generation and transmission;
            (2) existing standards with respect to the percentage of 
        carbon dioxide required to be captured and stored by projects 
        that receive Federal funds; and
            (3) liability standards with respect to the long-term 
        storage of carbon dioxide.

                  TITLE IV--TAXATION OF FOREIGN INCOME

SEC. 401. ALLOCATION OF EXPENSES AND TAXES ON BASIS OF REPATRIATION OF 
              FOREIGN INCOME.

    (a) In General.--Part III of subchapter N of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after subpart G 
the following new subpart:

``Subpart H--Special Rules for Allocation of Foreign-Related Deductions

``Sec. 975. Deductions allocated to deferred foreign income may not 
                            offset United States source income.

``SEC. 975. DEDUCTIONS ALLOCATED TO DEFERRED FOREIGN INCOME MAY NOT 
              OFFSET UNITED STATES SOURCE INCOME.

    ``(a) Current Year Deductions.--For purposes of this chapter, 
foreign-related deductions for any taxable year--
            ``(1) shall be taken into account for such taxable year 
        only to the extent that such deductions are allocable to 
        currently-taxed foreign income, and
            ``(2) to the extent not so allowed, shall be taken into 
        account in subsequent taxable years as provided in subsection 
        (b).
Foreign-related deductions shall be allocated to currently-taxed 
foreign income in the same proportion which currently-taxed foreign 
income bears to the sum of currently-taxed foreign income and deferred 
foreign income.
    ``(b) Deductions Related to Repatriated Deferred Foreign Income.--
            ``(1) In general.--If there is repatriated foreign income 
        for a taxable year, the portion of the previously deferred 
        deductions allocated to the repatriated foreign income shall be 
        taken into account for the taxable year as a deduction 
        allocated to income from sources outside the United States. Any 
        such amount shall not be included in foreign-related deductions 
        for purposes of applying subsection (a) to such taxable year.
            ``(2) Portion of previously deferred deductions.--For 
        purposes of paragraph (1), the portion of the previously 
        deferred deductions allocated to repatriated foreign income 
        is--
                    ``(A) the amount which bears the same proportion to 
                such deductions, as
                    ``(B) the repatriated income bears to the 
                previously deferred foreign income.
    ``(c) Definitions and Special Rule.--For purposes of this section--
            ``(1) Foreign-related deductions.--The term `foreign-
        related deductions' means the total amount of deductions and 
        expenses which would be allocated or apportioned to gross 
        income from sources without the United States for the taxable 
        year if both the currently-taxed foreign income and deferred 
        foreign income were taken into account.
            ``(2) Currently-taxed foreign income.--The term `currently-
        taxed foreign income' means the amount of gross income from 
        sources without the United States for the taxable year 
        (determined without regard to repatriated foreign income for 
        such year).
            ``(3) Deferred foreign income.--The term `deferred foreign 
        income' means the excess of--
                    ``(A) the amount that would be includible in gross 
                income under subpart F of this part for the taxable 
                year if--
                            ``(i) all controlled foreign corporations 
                        were treated as one controlled foreign 
                        corporation, and
                            ``(ii) all earnings and profits of all 
                        controlled foreign corporations were subpart F 
                        income (as defined in section 952), over
                    ``(B) the sum of--
                            ``(i) all dividends received during the 
                        taxable year from controlled foreign 
                        corporations, plus
                            ``(ii) amounts includible in gross income 
                        under section 951(a).
            ``(4) Previously deferred foreign income.--The term 
        `previously deferred foreign income' means the aggregate amount 
        of deferred foreign income for all prior taxable years to which 
        this part applies, determined as of the beginning of the 
        taxable year, reduced by the repatriated foreign income for all 
        such prior taxable years.
            ``(5) Repatriated foreign income.--The term `repatriated 
        foreign income' means the amount included in gross income on 
        account of distributions out of previously deferred foreign 
        income.
            ``(6) Previously deferred deductions.--The term `previously 
        deferred deductions' means the aggregate amount of foreign-
        related deductions not taken into account under subsection (a) 
        for all prior taxable years (determined as of the beginning of 
        the taxable year), reduced by any amounts taken into account 
        under subsection (b) for such prior taxable years.
            ``(7) Treatment of certain foreign taxes.--
                    ``(A) Paid by controlled foreign corporation.--
                Section 78 shall not apply for purposes of determining 
                currently-taxed foreign income and deferred foreign 
                income.
                    ``(B) Paid by taxpayer.--For purposes of 
                determining currently-taxed foreign income, gross 
                income from sources without the United States shall be 
                reduced by the aggregate amount of taxes described in 
                the applicable paragraph of section 901(b) which are 
                paid by the taxpayer (without regard to sections 902 
                and 960) during the taxable year.
    ``(d) Application of Section.--This section--
            ``(1) shall be applied before subpart A, and
            ``(2) shall be applied separately with respect to the 
        categories of income specified in section 904(d)(1).''.
    (b) Clerical Amendment.--The table of subparts for part III of 
subpart N of chapter 1 of such Code is amended by inserting after the 
item relating to subpart G the following new item:

     ``subpart h. special rules for allocation of foreign-related 
                             deductions''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 402. MODIFICATIONS TO RULES RELATING TO INVERTED CORPORATIONS.

    (a) In General.--Subsection (b) of section 7874 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(b) Inverted Corporations Treated as Domestic Corporations.--
            ``(1) In general.--Notwithstanding section 7701(a)(4), a 
        foreign corporation shall be treated for purposes of this title 
        as a domestic corporation if--
                    ``(A) such corporation would be a surrogate foreign 
                corporation if subsection (a)(2) were applied by 
                substituting `80 percent' for `60 percent', or
                    ``(B) such corporation is an inverted domestic 
                corporation.
            ``(2) Inverted domestic corporation.--For purposes of this 
        subsection, a foreign corporation shall be treated as an 
        inverted domestic corporation if, pursuant to a plan (or a 
        series of related transactions)--
                    ``(A) the entity completes after May 8, 2014, the 
                direct or indirect acquisition of--
                            ``(i) substantially all of the properties 
                        held directly or indirectly by a domestic 
                        corporation, or
                            ``(ii) substantially all of the assets of, 
                        or substantially all of the properties 
                        constituting a trade or business of, a domestic 
                        partnership, and
                    ``(B) after the acquisition, either--
                            ``(i) more than 50 percent of the stock (by 
                        vote or value) of the entity is held--
                                    ``(I) in the case of an acquisition 
                                with respect to a domestic corporation, 
                                by former shareholders of the domestic 
                                corporation by reason of holding stock 
                                in the domestic corporation, or
                                    ``(II) in the case of an 
                                acquisition with respect to a domestic 
                                partnership, by former partners of the 
                                domestic partnership by reason of 
                                holding a capital or profits interest 
                                in the domestic partnership, or
                            ``(ii) the management and control of the 
                        expanded affiliated group which includes the 
                        entity occurs, directly or indirectly, 
                        primarily within the United States, and such 
                        expanded affiliated group has significant 
                        domestic business activities.
            ``(3) Exception for corporations with substantial business 
        activities in foreign country of organization.--A foreign 
        corporation described in paragraph (2) shall not be treated as 
        an inverted domestic corporation if after the acquisition the 
        expanded affiliated group which includes the entity has 
        substantial business activities in the foreign country in which 
        or under the law of which the entity is created or organized 
        when compared to the total business activities of such expanded 
        affiliated group. For purposes of subsection (a)(2)(B)(iii) and 
        the preceding sentence, the term `substantial business 
        activities' shall have the meaning given such term under 
        regulations in effect on May 8, 2014, except that the Secretary 
        may issue regulations increasing the threshold percent in any 
        of the tests under such regulations for determining if business 
        activities constitute substantial business activities for 
        purposes of this paragraph.
            ``(4) Management and control.--For purposes of paragraph 
        (2)(B)(ii)--
                    ``(A) In general.--The Secretary shall prescribe 
                regulations for purposes of determining cases in which 
                the management and control of an expanded affiliated 
                group is to be treated as occurring, directly or 
                indirectly, primarily within the United States. The 
                regulations prescribed under the preceding sentence 
                shall apply to periods after May 8, 2014.
                    ``(B) Executive officers and senior management.--
                Such regulations shall provide that the management and 
                control of an expanded affiliated group shall be 
                treated as occurring, directly or indirectly, primarily 
                within the United States if substantially all of the 
                executive officers and senior management of the 
                expanded affiliated group who exercise day-to-day 
                responsibility for making decisions involving 
                strategic, financial, and operational policies of the 
                expanded affiliated group are based or primarily 
                located within the United States. Individuals who in 
                fact exercise such day-to-day responsibilities shall be 
                treated as executive officers and senior management 
                regardless of their title.
            ``(5) Significant domestic business activities.--For 
        purposes of paragraph (2)(B)(ii), an expanded affiliated group 
        has significant domestic business activities if at least 25 
        percent of--
                    ``(A) the employees of the group are based in the 
                United States,
                    ``(B) the employee compensation incurred by the 
                group is incurred with respect to employees based in 
                the United States,
                    ``(C) the assets of the group are located in the 
                United States, or
                    ``(D) the income of the group is derived in the 
                United States,
        determined in the same manner as such determinations are made 
        for purposes of determining substantial business activities 
        under regulations referred to in paragraph (3) as in effect on 
        May 8, 2014, but applied by treating all references in such 
        regulations to `foreign country' and `relevant foreign country' 
        as references to `the United States'. The Secretary may issue 
        regulations decreasing the threshold percent in any of the 
        tests under such regulations for determining if business 
        activities constitute significant domestic business activities 
        for purposes of this paragraph.''.
    (b) Conforming Amendments.--
            (1) Clause (i) of section 7874(a)(2)(B) of such Code is 
        amended by striking ``after March 4, 2003,'' and inserting 
        ``after March 4, 2003, and before May 9, 2014,''.
            (2) Subsection (c) of section 7874 of such Code is 
        amended--
                    (A) in paragraph (2)--
                            (i) by striking ``subsection 
                        (a)(2)(B)(ii)'' and inserting ``subsections 
                        (a)(2)(B)(ii) and (b)(2)(B)(i)'', and
                            (ii) by inserting ``or (b)(2)(A)'' after 
                        ``(a)(2)(B)(i)'' in subparagraph (B),
                    (B) in paragraph (3), by inserting ``or 
                (b)(2)(B)(i), as the case may be,'' after 
                ``(a)(2)(B)(ii)'',
                    (C) in paragraph (5), by striking ``subsection 
                (a)(2)(B)(ii)'' and inserting ``subsections 
                (a)(2)(B)(ii) and (b)(2)(B)(i)'', and
                    (D) in paragraph (6), by inserting ``or inverted 
                domestic corporation, as the case may be,'' after 
                ``surrogate foreign corporation''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after May 8, 2014.

                       TITLE V--DEFICIT REDUCTION

SEC. 501. DEFICIT REDUCTION.

    For purposes of the amount of any increase in revenue to the 
Treasury by reason of the provisions of this Act and the amendments 
made by this Act, $1,000,000,000 of such amount shall be, at such times 
and in such manner as determined appropriate by the Secretary of the 
Treasury (or the Secretary's delegate), deposited and credited as 
general revenue of the Treasury for the purposes of deficit reduction 
and shall not be available for obligation.
                                 <all>